Crypto.com To Take USDT off the list in Canada due to pressure from regulators
USDT is the most significant stablecoin in the world, but not in Canada. Crypto.com was required to delist the cryptocurrency in order to comply with applicable legislation.
In order to comply with Canadian legislation, Crypto.com delisted USDT, the most prominent stablecoin in the crypto industry, on January 9.
Several Reddit and Twitter users stated that Crypto.com issued an email to Canadian users advising them of the decision.
Users will have until January 31 to withdraw or trade USDT for another currency, according to the announcement. Failing to do so will result in the automated conversion of all USDT holdings to USDC, Circle’s stablecoin.
Reddit user zoomercoomer9000 stated that Canadian authorities issued a statement in late December prohibiting registered or pending registration cryptocurrency platforms from allowing Canadian users to trade cryptocurrencies that “are itself a securities and/or derivative.”
“As a consequence of this continuing investigation, the CSA believes stablecoins or stablecoin arrangements may be securities and/or derivatives. It is unlawful for registered or pre-registered crypto trading platforms to allow Canadian customers to trade or get exposure to any crypto asset that is itself a security and/or derivative.
For many users, the delisting of USDT in Canada was a foreshadowing of what may occur internationally if other nations chose to target cryptocurrencies with more onerous rules.
Others believed that Crypto.strong Com’s connection with Circle, the issuer of USDC, was the reason for the delisting, and it was all a “business arrangement” to reduce competition. Something like what Binance did to USDC.
Zoomercoomer9000 said, “Tether has a rather murky past,” saying that they previously lied about their 1:1 peg to the US dollar and did not reveal their relationship with Bitfinex until the Paradise Papers exposed it.
In the meanwhile, some users stated that the delisting of USDT is “a major issue for Canadians” since it reduces their opportunities to earn interest on their funds.
While the great majority of users were dissatisfied with Crypto.com’s activities, some said that regulation is the only way for cryptocurrencies to grow more prevalent and for significant firms to join the ecosystem.
Crypto.Com has not yet issued an official comment on the matter, but it has confirmed the decision to other media outlets. In addition, they did not specify if this was a temporary or permanent prohibition, therefore it is assumed to remain in force until further notice.